CASHOUT REFI OR HELOC ON RAW LAND CAN IT BE DONE

[Zach Fairfield]

I am looking to do a cash out REFI or a Heloc on a piece of raw land that we own in order to finance building a shop on another piece of land we have.  The property is in Boring, OR. Or Damascus, OR. Right on the border depends on who you talk to. 

Ok details:

Lot is held in an llc. 

Lot does have a shop and power but no sewer and is zoned for agriculture. 

Lot is non build-able currently has seasonal stream running thought and city sewer is not quite there yet. 

Value of land $45,000

Land is owned outright no mortage.

Would like to pull 50% or 20k out. or have as a heloc.

Once new shop is built will move everything out of shop and rent or lease to pay the monthly payments. 

Will rent from 300-500 depending on renter. 

We are holding the land untill the city sewer comes in and the land value doubles or tripples. All properties in the area are going for around 500k median. 

Have a person credit score of 750 and a good job and am willing to personally guarantee the loan. 

Any advise, strategies, referrals would be awesome. 

[Matt J.]

Hello Zach - my gut reaction is this is going to be tough. My suggestion is to speak with a credit union or small/regional bank. The reason for this is you've got a better chance of the actual decision maker listening to you and your situation versus saying this loan "doesn't fit in the box". The other benefit of these small lenders is they have the ability, and often do, portfolio the loan (hold it in their books and service it). I prefer credit unions myself.

Good luck and I hope it works out for you.